Business
Update
Update.
About this update from Afentra Plc
[{"type":"text","content":"\n RNS Number : 5026O Sterling Energy PLC 09 March 2009 \n \nNOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION\n\n\n9 March 2009\n\nSTERLING ENERGY PLC\n('Sterling' or the 'Company')\n\nFinancial and Corporate Update\n\nProgress on Refinancing\n\nSterling (symbol: SEY), an AIM listed independent oil & gas exploration and production company with interests in the Gulf of Mexico, Africa and the Middle East, today issued the following update regarding its banking facilities, recent trading and certain other corporate matters.\n\n\n\nThe Company is in advanced discussions with its syndicate banks regarding the granting of a waiver until mid August in connection with the schedule of repayments on its loan needed to bring borrowings into line with the expected reduction in the Borrowing Base.\n\n\n\n\n\nNatixis, as agent and technical bank, has indicated that, reflecting the major fall in energy prices in the last few months, the Company's Borrowing Base under its syndicated debt facility would currently be approximately US$76 million.\n\n\n\n\n\nThe reduction would give rise to a debt gap of approximately US$28 million, after taking account of an US$8 million repayment by the Company on 17 February 2009.\n\n\n\n\n\nWhile there can be no certainty of a successful outcome to these discussions, Sterling expects to reach agreement with the Banking Group and is satisfied that such an agreement would provide sufficient headroom for Sterling to continue to service its existing cash flow obligations until at least the next scheduled Borrowing Base re-determination.\n\n\n\n\n\nThe Group's current cash resources are approximately US$7 million.\n\n\n\n\n\nNet production in the USA and Mauritania averaged 4,750 boepd in 2008 and is currently 5,100 boepd. Since the start of 2009 Sterling has participated in 4 wells in the USA, all of which have been successful.\n\n\n\n\n\nSeismic acquisition on the Sterling operated Sangaw North block in Kurdistan has been complete...